The Swedish furniture giant Ikea is raising the minimum wage in all of its U.S. stores, and it’s doing so in a way that may raise the bar for American retailers. The famous seller of ready-to-assemble home goods will base the wage floor for each of its stores on the MIT Living Wage Calculator, which estimates what salary a worker would need in order to get by in a particular geographic area.
According to Ikea, the move will boost the average store minimum wage to $10.76, a 17 percent increase, and bring raises to approximately half of the company’s 13,650 U.S. employees. The new rates will go into effect on Jan. 1, according to Rob Olson, chief financial officer and acting president of Ikea U.S.
Brilliant move by IKEA, especially since they’ve been criticized in the past for treating their American workers differently than their European workers. Considering the company isn’t planning on passing the cost along to its consumers, this whole decision really flies in the face of the American corporate status quo. It’s going to be harder for businesses to keep saying they can’t afford to pay their workers a living wage or even their health insurance.